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A few days ago, the New York Times reported that E*Trade Financial offered to buy Ameritrade causing both companies' shares to get a boost, but the news was unconfirmed.

The news was unconfirmed until now that is. E*Trade has now confirmed that it offered Ameritrade shareholders 47.5% of a combined company, plus $1.5 billion in cash.

"The proposed deal represents immediate value creation for shareholders of both Ameritrade and E*Trade," said Mitchell Caplan, E*Trade's chief executive officer in a statement.

Ameritrade is apparently not too interested in E*Trade's offer. Last week, E*Trade sent Ameritrade a letter expressing their interest in the company, but Ameritrade declined.

"Ameritrade is not for sale. We are confident in our management team and its strategy," said Ameritrade founder and Chairman Joe Ricketts. As Reuters says,

Ameritrade, which has done seven mergers in the past four years, said it expects the industry to continue to consolidate. It said it would continue to explore strategic opportunities, but did not elaborate.

Media reports said Omaha, Nebraska-based Ameritrade has held talks with TDWaterhouse Group parent Toronto-Dominion Bank about purchasing that New York online operation.

Ameritrade shares dropped 45 cents, or 3.4% to $13.31 in premarket trading today after going up 34 cents, or 2.5% yesterday on the Nasdaq Stock Market.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.